European Shares Edge Higher On US Stimulus Hopes
European shares eked out modest gains on Thursday as investors pinned hopes on a U.S. stimulus deal and cheered signs of manufacturing growth in the region.
The pan European Stoxx 600 rose half a percent to 362.80 after slipping 0.1 percent the previous day. The German DAX edged up 0.1 percent, France’s CAC 40 index gained 0.6 percent and the U.K.’s FTSE 100 added 0.9 percent.
Chipmaker STMicroelectronics surged 6 percent after raising its 2020 revenue outlook.
Hennes & Mauritz AB jumped nearly 8 percent. After posting better-than-expected third-quarter earnings, the Swedish fashion brand said the worst of the pandemic crisis is behind it.
Bayer slumped 10 percent. The pharmaceutical and chemicals company has unveiled plans to cut jobs and exit non-strategic businesses or brands, as the coronavirus pandemic impacts its businesses. It expects to take a non-cash impairment charges on agricultural business due to low commodity prices.
Rolls-Royce Holdings plunged almost 9 percent. The struggling aircraft engine maker announced plans to raise 2 billion pounds by selling shares to existing investors.
Travis Perkins rose about 2 percent. The distributor of building materials said that Stuart Chambers wishes to step down in the coming months as non-executive Chairman of the company.
In economic releases, IHS Markit’s final Manufacturing Purchasing Managers’ Index climbed to 53.7 in September from August’s 51.7, in line with an earlier flash reading and its highest level since August 2018.
Eurozone’s unemployment rate rose for a fifth consecutive month in August, Eurostat said. The seasonally adjusted jobless rate rose to 8.1 percent from 8.0 percent in July, which was revised from 7.8 percent. The latest rate was in line with economists’ expectations.
Euro area producer prices continued to fall in August, though the pace of decline slowed more-than-expected, preliminary data showed.
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